‘Say-on-pay’ rules unnecessary: CCGG

Coalition says Canadian companies improving executive compensation practices
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 03/24/2008

Companies are clearly making strides to improve executive compensation practices so there is no need to push for “say-on-pay” resolutions, for now, according to the Canadian Coalition for Good Governance (CCGG), which recently released a position paper on the topic.

“It was widely discussed and unanimous in the end that this was not something that should be legislated or mandated, nor would we support it unilaterally,” said David Beatty, managing director of the Toronto-based CCGG, which has 49 institutional investors as members.

“We may revise that later on, when disclosure is out and mature. People who get vast amounts on a single-trigger severance and then get rehired in the next minute, if our members are shareholders of those companies, those chairs and directors will certainly hear from the individual members. So we’re not abrogating the field and saying ‘pay what you like’ but (we’re saying) ‘we don’t want to second-guess you, we know you work hard at it.’”